Net Stocks Rebound as Amazon Changes Course

A steep drop in the bookseller yesterday has given way to a solid gain this morning.
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SAN FRANCISCO -- With (AMZN) - Get Report on the defensive Thursday following its earnings report, investors were reluctant to jump headfirst into Internet stocks. But in the world of the Internet, Thursday is but a distant memory and there has been no hesitation among traders today.

Some of today's enthusiasm may be stemming from an out-of-this-world earnings report from

(INSP) - Get Report

. The provider of Internet infrastructure systems reported a first-quarter loss of 3 cents a share, down from break-even results a year ago but narrower than the five-analyst consensus for a loss of 14 cents. It was up 14 3/4, or 12%, at 133 1/4 in early trading.



also reported a first-quarter loss, but it too was narrower than expected. EarthWeb reported a first-quarter loss of 82 cents a share, better than the 93-cent estimate for the provider of Internet-based online services. EarthWeb was up 3 5/8, or 7%, at 54 3/4.

Elsewhere among Internet stocks, was up 6 1/4, or 4%, at 174 1/2.


continues to soar after several brokerage houses began coverage of the stock on

Monday. It was up 5 15/16, or 4%, at 143 3/4. Last Friday, the stock closed at 88.


(RNWK) - Get Report

continues to be among the best-performing Net stocks. The company will hold a press conference Monday where it is expected to introduce a new version of RealPlayer and announce a number of partnerships. The stock was up 8, or 4%, at 223.

Shares of


(CSCO) - Get Report

were firmer after

Morgan Stanley Dean Witter

reiterated a strong buy rating on the stock. It was up 4 1/2, or 4%, at 113 11/16 early on.

Best Internet play?

Buy on weakness

Sell into strength

Overvalued -- not playing that game

Buy no matter what

Earnings are out, so am I